The Securities and Exchange Commission (SEC) has raised an alarm that fraudulent investment schemes are using Artificial Intelligence (AI)-driven endorsements by celebrities to deceive unsuspecting investors.
The commission, in a statement on Sunday, warned that the fraudsters are increasingly using deepfake videos and AI-generated content to lure victims, with manipulated videos featuring politicians, celebrities, and TV hosts being shared through Facebook ads, Instagram reels, and Telegram groups to give fraudulent platforms an air of credibility.
“Scammers are exploiting AI to fabricate endorsements and testimonials that appear genuine,” SEC said.
“This has made traditional fraud detection methods less effective, hence the need for tech-enabled regulation and greater public awareness.”
To counter the growing threat, the SEC is adopting advanced surveillance systems capable of detecting fraudulent activities in real time.
The commission, in partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) has come up with measures to check the trend.
“We are moving from reactive to predictive oversight. This is essential in combating fraud and systemic risks in our market,” the regulator added.
SEC said it has engaged social media companies to clamp down on misleading ads and warned influencers against promoting unlicensed investment schemes, threatening regulatory sanctions or prosecution for non-compliance.
Also, the commission urged Nigerians to exercise caution when investing, warning that schemes promising daily profits, zero risk, or celebrity-backed endorsements are likely scams that should raise a red flag.
The commission further encouraged Nigerians to verify the registration status of any investment platform on its website, where a list of licensed capital market operators is available.
SEC added that investors should verify that registration numbers on company websites match the commission’s portal details and avoid platforms operating solely through Telegram or WhatsApp without a verifiable office address.
